Amazon continues to dominate in the e-commerce sector, with its net sales spiking by 17 percent in the first quarter of 2019.
The online retail giant’s sales soared to USD 59.7 billion (EUR 53 billion) in the first quarter of this year, while net income more than doubled to USD 3.6 billion (EUR 3.2 billion).
Worldwide, Amazon's e-commerce revenue is expected to grow by nearly 20 percent this year to almost USD 441 billion (EUR 394 billion), according to research firm eMarketer.
Despite its financial successes so far in 2019, Amazon has struggled with online grocery sales. To help boost such sales, the digital retailer is rolling out a number of promotions and perks. For example, Amazon’s United States customers can now use their Flexible Spending Account and Health Savings Account debit cards towards eligible purchases on Amazon. Additionally, in an effort to spur sales of groceries and other items, Amazon recently extended its free one-day shipping to all Prime members.
Amazon’s main grocery competitor, Walmart, has also stepped up grocery delivery and pickup options over the past two years. But while Walmart offers free, two-day shipping around the U.S. for purchases of USD 35 (EUR 31.31) and more, it does not yet offer one-day free shipping.
“One-day free shipping... without a membership fee. Now THAT would be groundbreaking. Stay tuned,” Walmart said on Twitter last week.
Walmart’s existing network of 156 distribution centers in densely populated urban areas will make it easier for the enterprise build out a one-day service, Brandon Fletcher, an analyst at Sanford Bernstein, said in a research note, Reuters reported.
Both Amazon and Walmart are participating in a U.S. government pilot program that allows Supplemental Nutrition Assistance Program (SNAP) recipients to buy groceries online. The two-year test, which recently launched in New York, allows online purchasing by SNAP households with electronic benefit transfer (EBT) cards issued in New York.
